massey university foundation annual report 2009 · 2017-06-09 · 2009 was notable for two...

ANNUAL REPORT1 JANUARY - 31 DECEMBER 2009

TIRITEA HOUSE, FOUNDATION HQ

Massey University Foundation is the University’s registered charity which fosters philanthropy at Massey. Founded in 2004, the Foundation’s vision is to create an endowment fund that will exist in perpetuity for Massey and the wider global community that Massey serves.

ANNUAL REPORT 2009 1

Hon Steve MahareyVice-Chancellor, Massey University

We have set an ambitious strategy for Massey that aims to see it acknowledged as New Zealand’s defining university and as a world class centre for tertiary learning. Massey, like many other institutions, relies on philanthropy to bridge the gap between the income it receives from government and students and the real cost of supplying internationally competitive salaries, facilities and research.

2009 was notable for two memorable milestones.

The Foundation launched its first major fundraising campaign, to raise $18 million for the Heritage Fund. Massey’s founding buildings - Old Main Building, Refectory, Old Registry and Tiritea House - form a precinct of historic importance clustered around the cricket oval on the Manawatu campus. These buildings are in need of upgrading to preserve them including some essential structural work to ensure that they are compliant with the updated earthquake code.

The Foundation initiated its first international fundraising arm - Friends of Massey USA. The board includes noted US-based alumni Linda Jenkins, Prof Wayne McIlwraith and Laurel

Colless. Having gained charitable status the Foundation will begin fundraising in the United States in 2010.

2009 was also a year of rapid change and reorganisation for the Foundation.

During the year the Foundation, along with Alumni Relations, relocated to Tiritea House – formerly the Vice-Chancellor’s residence on the Manawatu campus. Not only does this historic building provide more space for activities and staff, alumni and friends of Massey relish the chance to visit once-hallowed ground and enjoy some of the university’s art collection on display.

The Foundation disbursed 43 scholarships totalling $71,000 to undergraduate and postgraduate Massey students. Further funding of $143,740 was disbursed for research at Massey. Substantial donations during the year included a significant sum from the estate of the late Dr Joan Dingley, recipient of an Honorary Doctorate of Science from Massey in 1994. Joan was a major research scientist in New Zealand for both laboratory and field-based plant pathology, and for taxonomic mycology. The Foundation also received the Allan

Gibson fund which recognises student excellence in second and third year accountancy.

Staff and students were shocked by the sudden death of staff member Dr Marijcke Vlieg-Hultsman, a much loved and respected colleague and teacher in mathematics. Her colleagues established a prize-fund with the Foundation and expect to make the first award in 2010.

The Foundation is governed by a board of noted alumni which give freely of their time for Massey. 2009 saw the retirement from the board of Jim Scotland after serving for three terms and for some time as audit and governance sub-committee chair. The board welcomed three new members - Prof Andrea McIlroy, Dr Brian Ward and John Harrison. I thank all my fellow trustees and the staff who serve the Foundation for their support during the year.

Hon Steve MahareyCNZM, BA, MA (Hons)Vice-ChancellorMassey University

“What defines us is our capacity to shape the future of our nation and our commitment to taking what is special about New Zealand to the world”

ANNUAL REPORT 20092

Contents

Statement of Management Responsibility 3

Trust Directory 4

Statement of Comprehensive Income 5

Statement of Changes in Equity 5

Statement of Financial Position 6

Statement of Cash Flows 7

Statement of Accounting Policies 9

Notes to the Financial Statements 11

Report of the Auditor General 14


Statement of Management ResponsibilityFOR THE YEAR ENDED 31ST DECEMBER 2009

The trustees of Massey University Foundation accept responsibility for the preparation of the annual financial statements and the judgments used in these statements.

The trustees accept responsibility for establishing and maintaining a system of internal control designed to provide reasonable assurance as to the integrity and reliability of the Trust’s financial reporting.

In the opinion of the trustees the annual statements for the financial year fairly reflect the financial position and operation of the trust.

The trust’s financial statements were adopted by the trustees on Date

Trustee Date

29 April 2010

29 April 2010

ANNUAL REPORT 20094

Trust DirectoryAS AT 31ST DECEMBER 2009

REGISTERED OFFICE

Massey UniversityTuritea CampusTennant DrivePalmerston North

TRUSTEES

Warren Larsen (Chair) appointed 10/07/03 Phil Lough appointed 10/07/03Jim Scotland appointed 10/07/03 resigned 20/08/09Sue Lane appointed 5/12/05John Luxton appointed 04/12/06Colin Harvey appointed 27/07/07Steve Maharey appointed 04/10/08

AUDITORS

Audit New ZealandOn behalf of the Auditor-General

BANKERS

Bank of New Zealand

NATURE OF BUSINESS

Charitable Trust

LOCATION OF BUSINESS

Palmerston North

ACCOUNTANT

Massey University

SOLICITOR

Cooper Rapley240 Broadway AvenuePalmerston NorthPh (06) 358 6123Fax (06) 356 4345


Statement of Comprehensive Income FOR THE YEAR ENDED 31ST DECEMBER 2009

FOUNDATION FOUNDATION

Actual Actual Note 2009 2008 $000 $000

INCOMEInterest Income from BNZ - 1Unrealised Gains/(Losses) Tyndall Equities 5 759 (384)Unrealised Gains/(Losses) Tyndall Interest & Bonds 5 46 (1)Other Income 36 -Total Income/(Loss) 841 (384)

EXPENSES

Audit Fees 9 8Investment Management Fees 44 47Other Operating Expenses - 28Total Expenses 53 83

NET SURPLUS/(DEFICIT) 788 (467)

OTHER COMPREHENSIVE INCOME - -

Total Comprehensive Income for the year 2 788 (467)

Statement of Changes in EquityFOR THE YEAR ENDED 31ST DECEMBER 2009

FOUNDATION FOUNDATION Actual Actual Note 2009 2008 $000 $000

EQUITY AT START OF YEAR 10,300 10,876

Surplus/(Deficit) and Total Comprehensive Income 788 (467)Contributed Capital from Massey University 164 186Distribution from Retained Income (191) (260)Distribution of Contributed Capital - (35)

EQUITY AT END OF YEAR 2 11,061 10,300

The Statement of Accounting Policies and Notes to the Financial Statements form part of and are to be read in conjunction with these statements.

ANNUAL REPORT 20096


Statement of Financial PositionAS AT 31ST DECEMBER 2009

FOUNDATION FOUNDATION Actual Actual Note 2009 2008

$000 $000

CURRENT ASSETS

Cash and Cash Equivalents 3 3Accounts Receivable and Accruals 8 162 90Other Financial Assets 5 11,163 10,558

Total Current Assets 11,328 10,651

CURRENT LIABILITIES

Accounts Payable and Accruals 9 267 315Massey University 4 - 36

Total Current Liabilities 267 351

NET ASSETS 11,061 10,300

Represented by:FOUNDATION EQUITY

Contributed Capital 2 10,884 10,720Retained Earnings 2 177 (420)

TOTAL FUNDS EMPLOYED 11,061 10,300


Statement of Cash FlowsFOR THE YEAR ENDED 31ST DECEMBER 2009

FOUNDATION FOUNDATION Actual Actual Note 2009 2008 $000 $000

CASH FLOWS FROM OPERATING ACTIVITIES

Cash was provided fromDonations - -Interest Income from the BNZ - 1Operating Cost Reimbursement from Tyndall - - Other Income 36 - 36 1Cash was applied toBank Fees - -Investment Management Fees Paid 38 24Other Operating Expenses - 28 38 52 Net Cash Flows from Operating Activities 6 (2) (51)

CASH FLOWS FROM INVESTING ACTIVITIES

Cash was provided fromReceipt of Tyndall Reimbursement 291 248Cash was applied toPurchase of Investments 92 95Net Cash Flows from Investing Activities 199 153

CASH FLOWS FROM FINANCING ACTIVITIES

Cash was provided fromTrust Transfer Received 92 95Cash was applied toReimbursement of expenses incurred by Massey University 253 224Net Cash Flows from Financing Activities (161) (129)

Net Increase/(Decrease) in cash Held 36 (27)Cash Brought Forward (33) (6)Ending Cash Brought Forward 3 (33)

Cash in Hand is made upBank of New Zealand Account 3 3Massey University - (36) 3 (33)


ANNUAL REPORT 20098

For and on behalf of the Trust:

Trustee Date

Trustee Date

29 April 2010

29 April 2010


Statement of Accounting PoliciesFOR THE YEAR ENDED 31ST DECEMBER 2009

REPORTING ENTITY

The entity reporting is Massey University Foundation, a charitable trust of Massey University. It has held charitable status since 2004. Massey University Foundation has designated itself as a public benefit entity with applicable public benefit entity exemptions being adopted.

The financial statements are prepared in accordance with the trust deed and NZ GAAP. They comply with NZ IFRS and other applicable Financial Reporting Standards as appropriate for charitable entities.

Massey University Foundation is not aware of any material adjustment as a result of new standards coming into effect in 2010. It has not adopted any standards that have been issued but are not yet effective.

The financial statements of Massey University Foundation are for the year ended 31 December 2009.

MEASUREMENT BASE

The financial statements have been prepared on an historical cost basis.

The presentation and functional currency is New Zealand dollars and all values are rounded to the nearest thousand.

DIFFERENTIAL REPORTING

The Foundation has applied differential reporting with all exemptions being taken up except for the provision of a Cash Flow Statement.

The Foundation qualifies for differential reporting on the grounds that it is not publicly accountable within the meaning of the Framework for Differential Reporting. It is not large as it has less than 50 employees and total revenue was less than $20 million for the year.

REVENUE

Revenue is measured at the fair value of consideration received or receivable. Interest income is recognised at the maturation of investments with an accrual made for the portion that relates to the period between maturation date and balance date. Income earned is derived from interest earned on one current account and unrealised gains from investments held with Tyndall Investment Management Ltd.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short term highly liquid investments with original maturities of three months or less, and bank overdrafts.

ACCOUNTS RECEIVABLE

Receivables are stated at their fair value and subsequently measured at amortised cost using the effective interest method less any provision for impairment.

ANNUAL REPORT 200910

GOODS AND SERVICES TAXThe Statement of Comprehensive Income has been prepared so that all components are stated exclusive of GST. All items in the Statement of Financial Position are stated net of GST, with the exception of accounts receivable and accounts payable.

INCOME TAX

Massey University Foundation has received confirmation from the Commissioner of Inland Revenue for Exemption from Income Tax and Resident Withholding Tax by way of Charitable Status. Accordingly no charge for income tax has been provided for.

CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

In preparing these financial statements the Foundation has made estimates and assumptions concerning the future. These estimates and assumptions may differ from the subsequent actual results. Estimates and assumptions are continually evaluated and are based on historical experience and other factors including expectations of future events that are believed to be reasonable under the circumstances.

The Foundation invests its portfolio of assets with Tyndall Investment Management Limited. As part of the regular meeting schedule the trustees discuss the asset mix and weighting of the portfolio making recommendations on a best endeavors approach based on the current investment environment and likely future. Any adjustments that are recommended are discussed with Tyndall Investment Management Limited before being enacted.

FINANCIAL INSTRUMENTS

The Foundation is party to financial instruments as part of its normal operations as an investor with Tyndall Investment Management Ltd. Financial assets and financial liabilities are carried at fair value through the Statement of Comprehensive Income with transaction costs also recognised in the Statement of Comprehensive Income. Distribution of capital back to Massey University is recognised through the Statement of Changes in Equity.

FINANCIAL INSTRUMENT RISKSThe Foundation’s activities expose it to a variety of financial instrument risks, including market risk, credit risk and liquidity risk. The Foundation’s conservative investment policies seek to minimise the risks associated with financial instruments. Investing with Tyndall Investment Management Ltd seeks to minimise this risk by utilising experts in the investment field as do the regular trustee meeting’s held to discuss investment performance.

ACCOUNTS PAYABLEPayables are carried at amortised cost. Due to their short term nature they are not discounted. They represent liabilities for goods and services provided to Massey University Foundation Trust prior to the end of the financial year that are unpaid, and arise when Massey University Foundation Trust becomes obliged to make future payments in respect of the purchase of those goods and services. The amounts are unsecured and usually paid within 30 days of recognition.

EVENTS AFTER BALANCE DATEThere were no events after balance date.

CHANGES IN ACCOUNTING POLICY

There have been no changes in accounting policies for the financial year ended 31st December 2009.


Notes to the Financial Statements FOR THE YEAR ENDED 31ST DECEMBER 2009

1. STATEMENT OF TRUST RELATIONSHIPMassey University Foundation acts as an investment vehicle for bequests and donations that have previously been held by the University and for future bequests and donations that may come into the University. It is responsible for a return on investment that meets the expense demands of the individual trusts and donated funds, and reinvestment of excess monies as accretion to the capital of those trusts and donated funds.

2. EQUITY 01/01/09 Distributed 31/12/09FOUNDATION EQUITY Opening Contributed Retained Distributed Closing Balance Capital Surplus Income Capital Balance $000 $000 $000 $000 $000 $000Trust Capital 10,720 164 10,884Retained Earnings (420) 788 (191) 177TOTAL FUNDS EMPLOYED 10,300 164 788 (191) 11,061

01/01/08 Distributed 31/12/08FOUNDATION EQUITY Opening Contributed Retained Distributed Closing Balance Capital Surplus Income Capital Balance $000 $000 $000 $000 $000 $000Trust Capital 10,569 186 (35) 10,720Retained Earnings 307 (467) (260) (420)TOTAL FUNDS EMPLOYED 10,876 186 (467) (260) (35) 10,300

Section 4 of the trust deed states that if the board accepts a gift on condition that it is used for a specific purpose within the purpose of the trust, the board:(a) Must keep that gift and any income arising from it separate from the other assets of the trust fund;

(b) Must use that gift and any income arising from it only for the specific purpose for which it has been given and to meet any expenses which the board considers relate (directly or indirectly) to the administration of that specific purpose; and

(c) May establish a sub-trust’s or sub-trust under clause 18.1 for this purpose. (i) Clause 18.1 states that the board may at any time establish a sub-trust or sub-trusts for purposes

within the purpose of the trust . The purpose terms and conditions shall be defined in writing.

The trust does not have funds received for a specified purpose and which are subject to specified conditions as envisaged by section 4 of the trust deed.

3. SECURITIES AND GUARANTEESThere was no overdraft as at balance date nor was any facility arranged.


4. RELATED PARTIES

Massey University Foundation is a wholly controlled entity of Massey University. It is significantly influenced by the university and in addition is its main source of funding. During the year Massey University vested funds with Massey University Foundation. All transactions between entities were conducted on an arm’s length basis using commercial terms. For the Year ended 31/12/09 the following were owed and owing.

2009 2008 $000 $000 Accounts Receivable from Massey University 162 90Accounts Payable to Massey University 267 315

5. TYNDALL UNREALISED GAINS Statement of Capital for the Year ended 31/12/09 2009 2008 Trust Capital $000 $000 $000 $000Trust FundsAccumulated Surplus Opening Balance 10,252 10,405

Retained Earnings 306 690 10,558 11,095

CURRENT YEAR ACTIVITYTransfers of Capital

Capital Contributions 92 96 Withdrawal of Funds (292) (248) (200) (152)

INVESTMENT ACTIVITYNet Investment Income Tyndall Equity 759 (384) Tyndall Interest & Bonds 46 (1) 805 (385)Deductions Imputation Credits - - Income - -

TOTAL TRUST CAPITAL 11,163 10,558

Represented by:Capital Stable Assets Cash New Zealand 650 556 Fixed Interest New Zealand 4,348 4,909 Fixed Interest Offshore 2,208 1,833 7,206 7,298 Equities Equities New Zealand 1,704 823 Equities Off Shore 2,253 2,437 3,957 3,260 11,163 10,558


6. RECONCILIATION OF THE NET SURPLUS ON OPERATIONS WITH THE NET CASH FLOWS FROM OPERATING ACTIVITIES 2009 2008 $000 $000

Surplus/(Deficit) on Operations 788 (467)

Less non-cash itemsUnrealised Losses / (Gains) Tyndall Equities (759) 384Unrealised Losses / (Gains) Tyndall Interest & Bonds (46) 1Add (Less) movements in working capital items & creditors 15 31

Net Cash flow from Operating Activities (2) (51)

7. STATEMENT OF CONTINGENT LIABILITIESAs at 31st December 2009 Massey University Foundation had no contingent Liabilities.

8. ACCOUNTS RECEIVABLEAccounts Receivable are made up of a combination of external income received into existing trusts but not yet transferred to the Foundation, and new trusts that have been established and not yet transferred to the Foundation. Once these transfers have been completed the funds are invested with Tyndall Investment Management Ltd.

2009 2008 $000 $000External Received into existing trusts 20 90New Trusts 142 -Total 162 90

9. ACCOUNTS PAYABLEAccounts payable are made up of retained earnings payable to Massey University for Audit Fees, Investment Management Fees, Scholarships and Other Expenses paid by the university on the foundation’s behalf. 2009 2008 $000 $000Audit Fees 17 8Investment Management Fees 53 47Scholarships 69 133Other Expenses 128 127Total 267 315

Report of the Auditor General

ALLAN GIBSON ACCOUNTANCY SCHOLARSHIP

Joan HaaseOwen Mccool D J MCGOWAN SCHOLARSHIP

Aatir Azhari

FARMERS’ UNION SCHOLARSHIP

Sophie Parker HELEN E AKERS PHD SCHOLARSHIP

Ahmed FayazKhaldoun ShatnawiArvindkumar SubbarajTruyen Vo

HELEN E AKERS POSTGRADUATE SCHOLARSHIP

Chifundo Kalengamaliro

JOAN BERRY FELLOWSHIP IN VETERINARY SCIENCE – UNDERGRADUATE

Tristram BennettEmma BullockChristina BurrRyan CattinFiona EsamLauren FraserSiu KooAngela ShoemackEckhard StalmannRobert Turner JOAN BERRY FELLOWSHIP IN VETERINARY SCIENCE – POSTGRADUATE

Charlotte Bolwell JOHANNES AUGUST ANDERSON POSTGRADUATE SCHOLARSHIP

Runhua XiaAnand Yadav

Scholarships Awarded in 2009

J P SKIPWORTH SCHOLARSHIP (ECOLOGY)

Gillian DennisRosemary Rippon JULIE ALLEY BURSARY

Gaylynne CarterGillian DennisMelissa Griffin MILLER MASSEY BUCHANAN SCHOLARSHIP

Emma Brown

MURIEL CADDIE SCHOLARSHIP IN VET SCIENCE

Kara Dawson PHYLLIS IRENE GREY FELLOWSHIP IN VETERINARY SCIENCE – UNDERGRADUATE

Christie BalcombDelwyn FenbyRobyn GrahamJessica McKenzieKatherine MezanJoanna PiercyRachel ProcterKatherine ReeveChristina RockThea Sweeney

PHYLLIS IRENE GREY FELLOWSHIP IN VETERINARY SCIENCE – POSTGRADUATE

Kara Dawson THE MASSEY UNIVERSITY ALUMNI DOCTORAL COMPLETION BURSARY

Rachel FindlayIrene Sanson WAITAWHITI MEMORIAL SCHOLARSHIP – UNDERGRADUATE

Matthew Compton

Tiritea HousePrivate Bag 11222

Palmerston North | New Zealand

+64 6 350 5159 | http://foundation.massey.ac.nz | [email protected]

massey university foundation annual report 2009 · 2017-06-09 · 2009 was notable for two...

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